In a more difficult economic and political environment, the company had very strong financial results for the third quarter. In a more difficult economic and political environment, the company had very strong financial results for the third quarter.

November 28, 2022

In a more difficult economic and political environment, the company had very strong financial results for the third quarter.

In a more difficult economic and political environment, the company had very strong financial results for the third quarter.

The economy is uncertain, trade flows are getting back to normal, and freight rates are going down sharply.
Strong financial position: In the third quarter, the net debt went down by USD 5.3 billion.
Setting up the Fund for Energies means increasing investments to speed up the energy transition in the shipping and logistics industries.
Modernization of the fleet.
The Board of Directors of the CMA CGM Group, a global player in sea, land, air, and logistics solutions, met today under the leadership of Rodolphe Saadé, Chairman and Chief Executive Officer, to review the financial statements for the third quarter of 2022.

Rodolphe Saadé, Chairman and Chief Executive Officer of the CMA CGM Group, said this about the results for the period:

“The CMA CGM Group had good results again in the third quarter. In the past two years, we’ve done a lot to improve our finances and grow our business along the entire supply chain. As demand has gone down, international trade flows have become more normal and freight rates have gone down by a lot. In this new environment, we will continue to invest to strengthen our position in maritime shipping and logistics, speed up our energy transition, and give our clients even better solutions.

Large investments to help the Group’s plan
Geopolitical tensions that didn’t go away in the third quarter of 2022 led to higher inflation and less spending by consumers, who are now spending more on services after COVID-19. These things slowed down the demand for freight, but they also helped to ease congestion in some ports.

In this situation, the CMA CGM Group stuck to its plan to improve its shipping, port, logistics, and air freight services while making a big commitment to the energy transition.

The Group was also affected by the unstable political situation, specifically by the rise in unit bunker costs caused by higher energy prices. With the same amount of fuel used, these higher energy prices led to a USD 822 million increase in bunker costs from the third quarter of 2021 to the third quarter of 2022. Spot freight rates went down because shipping demand went down, especially on the main East-West routes.


Major investments to strengthen the industrial assets of the CMA CGM Group
New investments are being made in maritime shipping to improve and extend the life of fleets.
To meet the challenges of the energy transition, the CMA CGM Group is sticking to its plan to upgrade and increase the sustainability of its fleet. The CMA CGM Galapagos and the CMA CGM Greenland, which are both French and have a capacity of 15,000 TEU and can run on both diesel and e-methane, were both built during the third quarter.

The CMA CGM Group wants to reach Net Zero Carbon by 2050 and wants to speed up the energy transition in shipping and logistics, which will be led by an improved energy mix.


The CMA CGM Group has strengthened its position as a global logistics provider and increased the number of services it offers to the automotive industry.
In July 2022, the European competition authorities gave their approval for the purchase of GEFCO. As the European leader in contract logistics and a specialist in shipping finished vehicles and other automotive logistics, GEFCO is a key part of keeping the European automotive industry’s production lines running smoothly.

Since the beginning of the year, CMA CGM has made several acquisitions that have strengthened the capabilities of the Group’s subsidiary CEVA Logistics. These acquisitions have added more than 12,000 employees and expertise in e-commerce, last-mile delivery, and automotive logistics.

The Group’s position as a port operator is strengthened.
The Group has a share of ownership in 50 port terminals in 33 different countries. It has planned its port operations to help its shipping lines grow and improve the quality of its customer service.

In the third quarter of 2022, CMA CGM added to its investment portfolio by winning the bid to privatize the Nhava Sheva terminal in India with its partner J M Baxi. The concession agreement, which was signed on July 29, will help businesses grow on the west coast of India. It will also improve and expand a 700-meter-long container terminal berth at the Jawaharlal Nehru Port so that it can handle more containers and provide better service. The investment has helped the CMA CGM Group strengthen its position in a regional and global market that is growing quickly.

CMA CGM Air Cargo continues to expand
CMA CGM Air Cargo is the air freight company of CMA CGM Group. It recently started a new service between Paris and Hong Kong. This came after it got its first two Boeing 777 freighters. The CMA CGM Air Cargo fleet has six planes right now, but by 2026, it will have 12 freighters.


Investing more to speed up the energy transition in the shipping and logistics industries
Setting up a €1.5 billion Energy Fund
In September, the CMA CGM Group announced that it would create a €1.5 billion Fund for Energies to speed up its energy transition and reach Net Zero Carbon emissions by 2050. The Fund’s goal is to speed up the Group’s efforts to reduce carbon emissions in its ocean, ground, and air freight shipping, as well as in its logistics business.

In particular, the Fund for Energies will support the development and industrial-scale production of renewable energies (biofuels, biomethane, e-methane, green methanol, etc.) while speeding up the decarbonization of port terminals, warehouses, and land vehicle fleets.

The Fund is a continuation of projects that have already been planned and started:

Beginning in 2026, the Salamander Project will make 11,000 tonnes of second-generation biomethane each year. Its goal is to make 200,000 tons of renewable gas per year by 2028.
A Titan-led project to make biomethane and turn it into a liquid will produce up to 100,000 tonnes by 2025, with the potential to double that amount by 2027.
As a partner in the Jupiter 1000 project in Fos, the CMA CGM Group wants to keep working with the consortium on ways to mass-produce low-carbon e-methane for its ships and help solve the problems of decarbonizing gas networks.

Carbon-freeing the French shipping industry will cost €200 million.
As part of the Fund for Energies, €200 million will be set aside at the start of 2023 for projects that can help the French shipping and port industries get rid of carbon emissions. CMA CGM hopes that this project will lead to the creation of innovative projects that will help the French shipping industry become carbon-free.

Third-quarter 2022 operating and financial performance Group: strong financial performance and a further reduction in debt

Key figures show the group’s strong financial performance and a further decrease in debt.
In the third quarter of 2022, the Group’s maritime shipping business brought in most of its USD 19.9 billion in revenue.

EBITDA was worth $9.15 billion, which is a 46% EBITDA margin.

The Group’s operating performance helped it keep improving its balance sheet. After taking into account current financial investments, the net debt on September 30, 2022, was USD 78 million, which was USD 5.3 billion less than on June 30, 2022.

In a more difficult economic and political environment, the company had very strong financial results for the third quarter. In a more difficult economic and political environment, the company had very strong financial results for the third quarter.

Freight rates in maritime shipping are going back to normal


Shipping freight rates are going back to normal. Here’s a sheet with all the important numbers.
In the third quarter of 2022, 5.7 million TEUs were moved, which is 4.1% more than the same time last year.

Maritime shipping made USD 15.7 billion in revenue, which is up 25.8% from the same time last year but down 2% from the previous quarter. This is because spot freight rates started going down in the second quarter and kept going down in the third quarter.

In the third quarter, EBITDA was worth $8.65 billion. The average revenue per TEU during the time period was USD 2,771, which helped the EBITDA margin go up from the previous year. The EBITDA for the quarter was 5% lower than the previous quarter.


Logistics: Most of the performance comes from recent acquisitions

Logistics performance mainly driven by recent acquisitions sheet with key figures
In the third quarter of the year, logistics made $4.34 billion in revenue, and EBITDA was $359 million.

Most of the growth came from shipping and flying freight. The business of contract logistics continued to get better. The acquisitions of Ingram Micro CLS, Colis Privé, and GEFCO also helped the division’s revenue and EBITDA grow.

This last one, whose purchase was finished at the end of July, brought in USD 750 million for Logistics during the time period.


Inflation, less money spent by consumers, and economic uncertainty
Geopolitical tensions
The health crisis and changes in how people spend their money, which led to strong demand during lockdowns, have put more pressure on the world’s supply chains than ever before. As a result of recent changes in world trade, these tensions are starting to ease. This is because geopolitical tensions are creating a much more uncertain economic environment.

Cost of living and energy
The Group thinks that energy costs will stay high, which will have a direct effect on its operating costs and, more generally, on consumer spending, especially in Europe. This inflationary environment, along with monetary policies, is making it hard to predict how the economy will grow, even though there have been steps to help consumers spend, especially in Europe.

Rates for shipping goods went down in the fourth quarter.
So, the Group is expecting a faster return to more normal freight rates and lower margins in the fourth quarter. The Group is keeping a close eye on geopolitical changes and how they might affect the economy, but it is still confident in its financial strength and ability to adapt to an uncertain environment.